Talk of a smaller iPad has been going around for years by those (like me) who actually want a smaller iPad, but recently I have seen mention in major main stream media like ABC, Bloomberg, and others. People ask about it becuase they are interested about it. They ask while pointing at the smaller Android tablets (and Fires initial success) The constant media attention/speculation to a "mini iPad" will gain a market following of interested people, thus a strong demand. More attention comes from the speculation it will be cheaper then the full size iPad (a not far fetched assumption due to less materials to make one). A smaller, less expensive iPad that can deliver the feel of the full sized one will at the least easily sell over a million a quarter, and potentially be a block buster. Now, if Apple releases the mini a few months before holiday season, they can rake in huge sales. What is more, if they offer a new iPad version in 6 month cycles (one big and one small), the frequent refresh rates will give Apple a more "fresh, active, look" . Apple can't let Samsung get all the spotlight by releasing a "tablet" several times a year. EDIT: 7.8" called iNote??